Scrap hike in FIT-All rate, ERC urged

Laban Konsyumer Inc. has asked the Energy Regulatory Commission (ERC) to scrap the recent hike in the feed-in tariff allowance (FIT-All) to P00.0983 per kilowatt-hour (kwh).

Laban Konsyumer president Victorio Dimagiba said the petition it filed with the ERC is consistent with the energy policy statement that the development of the renewable energy (RE) resources for power shall be cheaper for the consumers.

FIT-All is used to cover payments to renewable energy developers.

In the petition, Dimagiba said it was appalling that ERC decided to increase the FIT rates, retroactive to 2016 up to 2020, without citing any valid reason.

He said the P9.68 per kwh FIT rate for solar energy set in 2014 was further adjusted to a staggering P11.2758 per kwh in 2020.

For wind energy, the original FIT rate of P8.53 per kwh was also increased to P9.8976 per kwh.

Dimagiba said his letter of Dec. 16, 2020 on the same subject was ignored and not answered by ERC that compelled him to file the instant petition.

“As a keen advocate of consumer rights, we respectfully submitted that there is an undeniable need to nullify the said ERC decision to allow the proper observance of due process and set the proper forum, wherein all interested parties can engage in a hearing, especially with the participation of the consumers,” LKI said.

“At the onset, we respectfully highlight that the imposition of the abovementioned adjusted FIT rates does not comply with the requirements of the ERC and was based solely on data submitted by the renewable energy developers, and without the participation of other power generators, distribution utilities, electric cooperatives and the consumers,” the group said.

The consumer advocate is also opposing the 2021 FIT-All application for P0.22 per kwh from the current P0.09 per kWh.

Dimagiba will demand a detailed accounting of payments to RE resources developers of the adjusted and higher FIT rates.

LKI said it would look for a swift action to be taken by ERC to resolve the issues that have an immense impact on the costs being passed on to consumers, especially during these challenging times of pandemic.